Contributory pension scheme caused us misery – Retirees
The League of Federal Public Service Contributory Pension Retirees has said that the Contributory Pension Scheme (CPS) has caused its members misery as they are broke after retirement.
In a petition sent to the Daily Trust, the Coordinator of the League, Chike Ogbechie, lamented that retirees who left public service since January 2010 are suffering as their pension benefits are yet to be paid.
The retirees said the anticipated benefits of the contributory pension scheme have turned into a mirage.
The public service retirees said the introduction of the CPC as a reform initiative to solve the problems of the old defined benefit scheme ended up putting the pensioners under the new scheme in disadvantaged position in the sense that their pensions became “substantially reduced” when compared with their counterparts in the old scheme.
“That disadvantage informed the successful struggle of the Armed Forces and the Intelligence Community to secure their reversion to the old scheme in 2010 and the failed attempt by the Police in 2011 to be similarly treated,” the petition stated.
The retirees are worried that despite the reduction in the total value of benefits, the delays known for the old benefits are still present with the new scheme.
The retirees indicated that though the new scheme started off by paying the earlier set of retirees three months after exiting active service, the situation has now degenerated to over one-year delay before retirees can get their benefits.
The retirees wondered why government had not been forthcoming in offsetting its accrued pension obligation as required by law.
“To buttress this point, you may wish to know that our fellow retirees who had no accrued pension as they joined the service after June 2004 were paid their pensions within one month of retirement,” the petition stated.
The retirees pleaded with the federal government to urgently release their accrued pension rights so as they would be able to access their retirement savings accounts with various pension fund administrators.